Stanley Black & Decker Reports 3Q 2026 Results
STANLEY BLACK & DECKER, INC. (SWK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Stanley Black & Decker Reports 3Q 2026 Results Results Include Benefit from Additional Tariff Refunds in 3Q, Supporting Increases to 2026 EPS and Free Cash Flow Guidance Organic Growth and Margin Expansion Progress Continued in 3Q, Excluding the Benefit from Tariff R
How this was made
The 30-second read
Why it matters
Raised EPS and free cash flow guidance, combined with a new $1 billion share repurchase authorization, suggest stronger cash generation and shareholder returns.
Market read
The earnings beat and raised guidance are likely to boost SWK stock and may set a positive tone for the industrial tools sector.
What to watch
Potential headwinds from automotive demand pressure in engineered fastening segment.
Stanley Black & Decker Reports 3Q 2026 Results; Raises 2026 EPS and Free Cash Flow Guidance
Organic growth, substantial gross-margin expansion, positive cash generation and raised EPS and free-cash-flow guidance were tempered by a 1% decline in reported net sales and significant benefits from net tariff refunds.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q 2026 net salesGAAP | $3.7B | – | down 1% on a total basis and up 4% organically |
| 3Q 2026 gross marginGAAP | 39.0% | – | up 760 basis points |
| 3Q 2026 adjusted gross marginnon-GAAP | 39.4% | – | up 780 basis points |
| 3Q 2026 SG&A expensesGAAP | 24.2% of sales | – | up 310 basis points |
| 3Q 2026 adjusted SG&A expensesnon-GAAP | 24.2% | – | up 320 basis points |
| 3Q 2026 tax rateGAAP | 24.0% | – | – |
| 3Q 2026 adjusted tax ratenon-GAAP | 23.3% | – | – |
| 3Q 2026 net earnings marginGAAP | 7.3% of sales | – | an increase of 590 basis points |
| 3Q 2026 EBITDA marginnon-GAAP | 14.1% | – | an increase of 760 basis points |
| 3Q 2026 adjusted EBITDA marginnon-GAAP | 16.3% | – | an increase of 400 basis points |
| 3Q 2026 EPSGAAP | $1.83 | – | – |
| 3Q 2026 adjusted EPSnon-GAAP | $2.31 | – | – |
| 3Q 2026 cash from operating activitiesGAAP | $659M | – | – |
| 3Q 2026 free cash flownon-GAAP | $585M | – | – |
| 3Q 2026 Tools & Outdoor segment profitGAAP | $568.7 | – | – |
| 3Q 2026 Tools & Outdoor adjusted segment profitnon-GAAP | $586.9 | – | – |
| 3Q 2026 Tools & Outdoor segment marginGAAP | 17.0% | – | up 520 basis points year over year |
| 3Q 2026 Tools & Outdoor adjusted segment marginnon-GAAP | 17.6% | – | up 560 basis points year over year |
| 3Q 2026 Engineered Fastening segment profitGAAP | $46.1 | – | – |
| 3Q 2026 Engineered Fastening adjusted segment profitnon-GAAP | $46.4 | – | – |
| 3Q 2026 Engineered Fastening segment marginGAAP | 11.7% | – | down 20 basis points year over year |
| 3Q 2026 Engineered Fastening adjusted segment marginnon-GAAP | 11.7% | – | down 110 basis points year over year |
| 3Q 2026 total pre-tax non-GAAP adjustmentsnon-GAAP | $89.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Tools & OutdoorHigher volume (+7%) was partially offset by pricing (-3%) and the strategic transition to a licensing model for gas walk-behind outdoor products (-2%). Organic revenue growth was primarily driven by power tools and strength in U.S. retail and commercial & industrial channels. | $3,336 | – | up 2% year over year; Organic revenue increased 4% |
| Engineered FasteningThe CAM divestiture (-22%) was partially offset by volume (+1%) and pricing (+1%), while currency was down (-1%). Organic growth reflected broad-based industrial strength, partially offset by automotive results below expectations. | $396 | – | down 21% year over year; Organic revenues were up 2% |
2026 outlook
- NoteGAAP EPS: $5.45 to $5.85
- NoteAdjusted EPS: $5.95 to $6.25
- NoteFree cash flow: $1.0 billion to $1.2 billion
- NoteThe difference between the GAAP and Adjusted EPS assumption range is approximately $0.40 to $0.50.
Capital returns
- During the third quarter, the Company repurchased approximately 2.5 million shares for approximately $250 million.
- The repurchases fully utilized the $500 million repurchase authorization approved in April 2026.
- The Board of Directors approved a new repurchase authorization for up to $1 billion on October 29, 2026, which will expire on October 29, 2029.
What drove it
- Higher volume (+6%) was offset by pricing (-2%) and portfolio changes (-4%) in consolidated net sales. Currency was flat.
- Gross margin and adjusted gross margin both included an approximate 430 basis point benefit from net tariff refunds.
- Tools & Outdoor margin improvement reflected net productivity gains and favorable product mix.
- The net tariff refunds raised Tools & Outdoor segment margin by approximately 430 basis points.
- 3Q EPS and adjusted EPS both included a benefit of approximately $0.67 from net tariff refunds.
Concerns
- Reported net sales were down 1% on a total basis.
- Engineered Fastening net sales were down 21% year over year, primarily due to the CAM divestiture (-22%).
- Engineered Fastening segment margin was impacted by automotive demand pressure, and automotive results were below expectations.
- SG&A expenses increased 310 basis points and adjusted SG&A expenses increased 320 basis points, including incremental costs and investments tied to tariff refunds received.
- The reported gross-margin and EPS results included benefits from net tariff refunds.
What to watch
- Whether Tools & Outdoor volume strength in U.S. retail and commercial & industrial channels continues.
- The progression of automotive demand pressure in Engineered Fastening.
- Execution against the $5.45 to $5.85 GAAP EPS range, $5.95 to $6.25 adjusted EPS range and $1.0 billion to $1.2 billion free-cash-flow range.
- The timing and amount of tariff refunds and associated mitigation, price actions and supply-chain adjustments.
- Use of the new repurchase authorization for up to $1 billion.
Balance sheet and cash flow
- Cash from operating activities was $659 million.
- Free cash flow was $585 million.
- Free cash flow is now expected to be in the range of $1.0 billion to $1.2 billion, revised from $600 million to $800 million.
Analysis
Stanley Black & Decker reported $3.7 billion of third-quarter net sales, down 1% on a total basis but up 4% organically. Consolidated volume increased 6%, while pricing declined 2% and portfolio changes reduced sales by 4%; currency was flat. The volume performance was primarily driven by U.S. retail and commercial & industrial channels in Tools & Outdoor.
Profitability expanded sharply, with gross margin of 39.0%, up 760 basis points, and adjusted gross margin of 39.4%, up 780 basis points. Both measures included an approximate 430 basis point benefit from net tariff refunds. SG&A expenses were 24.2% of sales, up 310 basis points, while adjusted SG&A expenses were also 24.2%, up 320 basis points, reflecting incremental costs and investments tied to those refunds. GAAP EPS was $1.83 and adjusted EPS was $2.31, each including an approximately $0.67 benefit from net tariff refunds.
Tools & Outdoor delivered $3,336 of sales, up 2% year over year and up 4% organically, with volume growth and strength in power tools, U.S. retail and commercial & industrial channels. Its 17.0% segment margin and 17.6% adjusted segment margin improved 520 basis points and 560 basis points, respectively, supported by net productivity gains, favorable product mix and the tariff-refund benefit. Engineered Fastening reported $396 of sales, down 21% because the CAM divestiture reduced sales by 22%; organic revenue rose 2%, but automotive results were below expectations and automotive demand pressure weighed on margin.
Cash from operating activities was $659 million and free cash flow was $585 million. The company repurchased approximately 2.5 million shares for approximately $250 million, exhausting its prior authorization, and authorized up to $1 billion of additional repurchases. Management raised 2026 GAAP EPS guidance to $5.45 to $5.85, raised and tightened adjusted EPS guidance to $5.95 to $6.25, and increased free-cash-flow guidance to $1.0 billion to $1.2 billion. The revised outlook incorporates the tariff refund realized year-to-date and projected taxes and fees associated with the CAM divestiture.
Management, verbatim
We saw strong underlying performance in the Tools & Outdoor segment in the third quarter, with continued strength in the U.S. retail and commercial & industrial channels. We were particularly encouraged by our organic growth* in the quarter, which was up 4 percent, demonstrating that our brand activation and innovation efforts are yielding results. Our third quarter performance reinforces the conviction we have in our full-year outlook and our long-term strategy.
Chris Nelson, President & CEO
We delivered a strong third quarter, achieving organic growth and margin expansion as we continued executing our strategy and investing for growth in a dynamic macro environment. Looking ahead, we remain focused on delivering our 2026 and longer-term growth, margin, and cash flow objectives.
Patrick Hallinan, EVP, Chief Financial Officer & Chief Administrative Officer
Not in the filing
stated, not guessed- Period-end date for 3Q 2026
- GAAP operating income
- Adjusted operating income
- GAAP net earnings dollar amount
- Prior-year dollar amounts for consolidated net sales, segment sales, segment profit, cash from operating activities, free cash flow, EPS and adjusted EPS
- Prior-quarter amounts for reported metrics
- Cash balance
- Debt balance
- Capital and software expenditures
- Revenue, gross-margin, operating-expense and tax-rate guidance
- Dividend amount or payment details
- Prior-outlook document for comparison with reported results
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K reporting Stanley Black & Decker's third‑quarter 2026 financial results and updated guidance.
Ticker impact
Stanley Black & Decker disclosed Q3 2026 results and raised its 2026 EPS and free cash flow guidance.
likely upward pressure as investors price in higher earnings expectations
The company reported higher margins, tariff refunds, and a new $1B share repurchase, supporting the raised guidance.
Market effects
Tools and outdoor segment shows margin expansion, may lift peers in industrial tools.
U.S. retail and commercial channels drive growth, supporting broader U.S. industrial sector.
Improved outlook could influence global tool manufacturers and suppliers.
Counterpoint
If tariff refunds are temporary, the raised guidance may be overstated.
Key entities
- companyStanley Black & Decker
Global leader in tools and outdoor solutions.
- executiveChris Nelson
President & CEO who commented on the results.
